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Inquiry: I am trying to determine if I can use the excess vacation hours  we pay an employee in the calculation of the H&W rate. The contracting officer feels the benefit must be actual cash paid for 2080 hours times 3.24. I read that "bona fide" benefits include vacation. For 5 years, we are required to pay them 3 weeks of vacation but we actually pay 168 hours; I read that the excess is a bona fide benefit and can be used in the minimum calculation. We certainly want to be compliant. Response: Let’s look at the Federal Guidelines under the Code of Federal Regulations (CFR) to determine compliance and applicability.  These guidelines are generally applicable to The McNamara-O'Hara Service Contract Act (SCA) contracts.

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